Bold claim: Inflation is eroding Canadians’ retirement security more than many realize, and the numbers tell a stark story. A new BMO survey shows that the rising cost of living is clearly shaping how people plan for retirement, with a clear majority feeling the impact.
Key findings:
- 74% of Canadians say inflation has raised concerns about whether they will have enough money to fund retirement.
- 66% report that inflation is already affecting their ability to save and invest for their golden years.
Brent Joyce, chief investment strategist at BMO Private Wealth, notes that inflation threatens retirement savings but emphasizes proactive strategies: stay invested and incorporate inflation assumptions into financial planning to gauge how portfolios may perform over long horizons.
Regarding immediate costs, nearly half of those affected (47%) report extra monthly expenses of $100–$300, while 34% say their additional costs exceed $300.
To cope, 31% are contributing less to retirement savings, 27% are cutting back on spending to keep savings on track, and 17% have delayed saving for retirement altogether.
Another segment of the population faces uncertainty: 30% don’t know how long their money will last in retirement, 22% expect their savings to stretch 10–19 years, and 13% anticipate 30+ years of retirement funding.
Paul Lalonde, head of wealth planning at BMO Private Wealth Canada, stresses that comprehensive financial and wealth planning is essential to bring clarity amid inflation’s complexity and ever-changing variables.
Housing and relocation trends also emerge. While most Canadians expect to retire where they live now, about 30% anticipate moving to another city, and roughly half of that group would relocate to another country.
Geographic nuances surface: Ontarians are most inclined to retire abroad (18%), while Quebec residents are the least likely (11%).
About the study:
- The survey was conducted online by Pollara Strategic Insights with 1,500 Canadians, conducted November 4–10 of last year.
Context: This report, originally published February 17, 2026, highlights how inflation reshapes retirement planning and the conversations Canadians are having about savings longevity and potential geographic moves.
In short, inflation isn’t just a number on a dashboard—it’s steering decisions about how much to save, where to live, and how long retirement funds might last. What do you think: should planners place even more emphasis on inflation-adjusted scenarios, or do traditional saving targets still hold solid enough ground? Share your thoughts in the comments.
